Share tips: where the experts are investing in 2018

We look at the big trends for 2018, and explain where the experts suggest you should put your money this year.

Where should you be investing in 2018? Which asset classes look the most attractive? What stocks and sectors have the best chances of delivering bumper returns?

These are never easy questions to answer.

The truth is no-one knows for certain what will happen over the next 12 months, but it’s often worth seeing what the experts are up to.

So we asked a string of financial advisers, market analysts, economists and stock pickers to highlight some potential investments that are worth considering.

Here’s what they had to say.

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Overall environment

The past 12 months have been strong for equity markets with decent stability for the first time since the global financial crisis, according to Adrian Lowcock, investment director at Architas.

“The global economy has been in fairly good health and we have seen a period of synchronised global growth,” he said.

He expects global growth – and corporate earnings – to continue rising in 2018, but is urging people to rein in their expectations.

“Equity markets are unlikely to have a repeat of 2017,” he said.

“Investors need to look towards areas which offer the best combination of value and growth.”

Big issues

Talks surrounding Britain’s forthcoming departure from the European Union are likely to affect the UK stock market, according to Steve Davies, head of strategy and UK growth at Jupiter.

He argued it’s looking increasingly likely that a transition agreement will be secured early in 2018, which will have a positive impact.

“The pound should rally, economic growth should pick up as inflation subsides (thus enhancing consumers’ spending power) and business confidence should improve,” he said.

Of course, this also means the FTSE 100 may struggle to make progress, given the fact many of its constituents are global companies whose earnings would be hit by a rise in sterling.

So, what will happen if talks don’t progress as expected? Davies suggests this would mean an increased probability of a hard Brexit.

“Theresa May’s Government could fall apart, potentially precipitating a new General Election and the possibility of Jeremy Corbyn becoming Prime Minister, albeit perhaps with a slim majority or in coalition with others,” he added.